Clarence Carr v. U.S. Bank, NA , 539 F. App'x 926 ( 2013 )


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  •             Case: 12-14535   Date Filed: 09/05/2013   Page: 1 of 8
    [DO NOT PUBLISH]
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE ELEVENTH CIRCUIT
    ________________________
    No. 12-14535
    Non-Argument Calendar
    ________________________
    D.C. Docket No. 1:11-cv-00688-JOF
    CLARENCE CARR,
    Plaintiff-Appellant,
    versus
    U.S. BANK, NA,
    as Trustee for TBW Mortgage Backed-Trust
    Series 2006-5 Mortgage Pass Through
    Certificates 2006-6,
    MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC.,
    Defendants-Appellees.
    ________________________
    Appeal from the United States District Court
    for the Northern District of Georgia
    ________________________
    (September 5, 2013)
    Before HULL, JORDAN and FAY, Circuit Judges.
    PER CURIAM:
    Case: 12-14535       Date Filed: 09/05/2013       Page: 2 of 8
    Clarence Carr appeals the district court’s grant of summary judgment in
    favor of U.S. Bank, NA (“U.S. Bank”) on his wrongful foreclosure claim arising
    under Georgia law in his action that was removed from state court on diversity
    jurisdiction, 
    28 U.S.C. §§ 1332
    , 1441. We affirm.
    I.
    In his complaint, Carr claimed that U.S. Bank wrongfully had foreclosed on
    his real property. He alleged that, although he had signed the underlying security
    deed, the notice of the initiation of proceedings to exercise the power of sale in the
    security deed was not sent by the secured creditor, in violation of Georgia law. 1
    U.S. Bank filed a summary judgment motion and argued Carr had received
    proper notice of the initiation of foreclosure proceedings under Georgia law by a
    letter dated January 7, 2010 (“January 2010 letter”), that Moss Codilis, L.L.P.
    (“Moss Codilis”) sent on behalf of the servicer and secured creditor. The January
    2010 letter stated that Moss Codilis had been authorized by the servicer of Carr’s
    loan and the creditor to contact Carr and that the servicer was providing formal
    notice, as authorized by the creditor of the loan, that Carr was in default under the
    conditions of the note and security instrument for his failure to pay the required
    1
    Carr’s complaint also brought suit against Mortgage Electronic Registration Systems,
    Inc. Carr’s case against that entity was dismissed because he failed to properly effect service,
    and he has abandoned any challenge to that determination by not raising that challenge on
    appeal. See Irwin v. Hawk, 
    40 F.3d 347
    , 347 n.1 (11th Cir. 1994) (providing that arguments not
    raised on appeal are abandoned).
    2
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    installments when due. The letter stated that Carr was required to pay the full
    amount of the default on the loan by the 35th day from the date of the letter. If
    Carr did not comply, then the entire sum due would be accelerated and any
    remedies provided in the note and security instrument would be invoked, including
    foreclosing on the property.
    Carr responded the January 2010 letter did not satisfy the notice
    requirements of O.C.G.A. §44-14-162.2, because the notice was not sent by the
    secured creditor. He noted that the January 2010 letter was sent on behalf of the
    servicer and failed to identify the secured creditor by name.
    In a report and recommendation (“R&R”), the magistrate judge determined
    that Carr could not show any breach of a legal duty owed to him by U.S. Bank
    based on a failure to comply with Georgia’s statutory notice requirements. The
    magistrate concluded that § 44-14-162.2 did not require the notice of the initiation
    of foreclosure proceedings to identify the secured party, only that the notice
    provide the “name, address, and telephone number of the individual or entity who
    shall have full authority to negotiate, amend, and modify all terms of the mortgage
    with the debtor.” In this case, the notice sufficiently provided the required
    information. The magistrate further determined that the notice required under
    § 44-14-162.2 could be sent by a duly authorized agent. Accordingly, because the
    notice was sent on behalf of the loan servicer and the creditor by an authorized
    3
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    agent of the entity to whom indebtedness was owed, the notice complied with § 44-
    14-162.2. The magistrate recommended that U.S. Bank’s motion for summary
    judgment be granted with respect to Carr’s wrongful foreclosure claim.
    Carr did not file any formal objections to the magistrate’s R&R. The district
    court reviewed and adopted the R&R, and it granted U.S. Bank’s motion for
    summary judgment.
    II.
    On appeal, Carr argues the district court erred in granting summary
    judgment in favor of U.S. Bank, because the record before the district court did not
    contain any evidence showing that Carr received proper notice of the foreclosure
    sale of his property, as required by § 44-14-162.2. Carr argues that the January
    2010 letter could not serve as the notice required under § 44-14-162.2. He
    contends the letter did not identify the secured creditor on whose behalf notice was
    being provided, and the letter was sent by a law firm on behalf of the loan servicer
    and an unidentified creditor. Carr argues the district court erred in determining
    that he could not demonstrate a causal relationship between any defect in the notice
    and his claimed injuries. 2
    2
    Carr also argues for the first time on appeal that: (1) he did not receive a copy of the
    advertisement of the foreclosure sale; (2) no notice was sent by registered, certified, or overnight
    mail; (3) he did not receive notice of the specific date of the foreclosure sale; and (4) he was not
    actually notified of the initiation of the proceedings to exercise the power of sale, as the January
    2010 letter only threatened to commence such proceedings. We decline to address these
    arguments not raised in the district court. See Ramirez v. Sec’y, U.S. Dep’t of Transp., 
    686 F.3d 4
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    We review de novo a district court’s grant of summary judgment. Burton v.
    Tampa Hous. Auth., 
    271 F.3d 1274
    , 1276 (11th Cir. 2001). Summary judgment
    should be granted where the movant shows there is no genuine dispute as to any
    material fact, and the movant is entitled to judgment as a matter of law.
    Fed.R.Civ.P. 56(a).
    In order to prevail on a wrongful foreclosure claim in Georgia, the plaintiff
    must establish the defendant violated Georgia’s foreclosure statutes. McCarter v.
    Bankers Trust Co., 
    543 S.E.2d 755
    , 758 (Ga. Ct. App. 2000). “[A] plaintiff
    asserting a claim of wrongful foreclosure must establish a legal duty owed to it by
    the foreclosing party, a breach of that duty, a causal connection between the breach
    of that duty and the injury it sustained, and damages.” Gregorakos v. Wells Fargo
    Nat’l Ass’n, 
    647 S.E.2d 289
    , 292 (Ga. Ct. App. 2007) (citation, internal quotation
    marks, and alteration omitted).
    Pursuant to § 44-14-162.2(a), the following notice requirements must be
    given to the debtor prior to a foreclosure sale:
    [n]otice of the initiation of proceedings to exercise a power of sale in
    a mortgage, security deed, or other lien contract shall be given to the
    debtor by the secured creditor no later than 30 days before the date of
    the proposed foreclosure. Such notice shall be in writing, shall
    include the name, address, and telephone number of the individual or
    entity who shall have full authority to negotiate, amend, and modify
    1239, 1249 (11th Cir. 2012) (providing that we will “generally refuse to consider arguments
    raised for the first time on appeal”).
    5
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    all terms of the mortgage with the debtor, and shall be sent by
    registered or certified mail or statutory overnight delivery, return
    receipt requested, to the property address or to such other address as
    the debtor may designate by written notice to the secured creditor.
    O.C.G.A. § 44-14-162.2(a). Where notice is not proper under § 44-14-162.2, the
    sale of the underlying real estate is not valid. See O.C.G.A. § 44-14-162(a).
    The Northern District of Georgia recently certified three questions to the
    Supreme Court of Georgia regarding the operation of Georgia’s law governing
    non-judicial foreclosures. You v. JP Morgan Chase Bank, N.A., 
    743 S.E.2d 428
    ,
    429-30 (Ga. 2013). The second question specifically asked: “Does O.C.G.A.
    § 44-14-162.2(a) require that the secured creditor be identified in the notice
    described by that statute?” Id. at 430. The Georgia Supreme Court issued its
    decision answering this question after briefing concluded in this appeal.
    As to the second question, the Georgia Supreme Court answered in the
    negative and referenced the language in O.C.G.A. § 44-14-162.2(a) to determine
    whom the notice must name. Id. at 433. It stated:
    If that [individual with the authority to negotiate, amend, and modify
    the terms of the mortgage] is the holder of the security deed, then the
    deed holder must be identified in the notice; if that individual or entity
    [with the authority] is the note holder, then the note holder must be
    identified. If that individual or entity is someone other than the deed
    holder or the note holder, such as an attorney or servicing agent, then
    that person must be identified.
    Id. at 433-34.
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    Carr’s argument, that the January 2010 letter does not identify the secured
    creditor, is meritless because § 44-14-162.2(a) does not require that a notice of the
    initiation of proceedings to exercise a power of sale do so. See id. In fact, the case
    most heavily relied upon by Carr to argue this point was vacated and remanded for
    reconsideration by the Georgia Supreme Court following its You decision. See
    Reese v. Provident Funding Assocs., 
    730 S.E.2d 551
     (Ga. Ct. App. 2012), vacated
    and remanded, No. S12C2028, order (May 20, 2013). You explains that § 44-14-
    162.2(a) only requires notice letters to identify the entity with the authority to
    modify the mortgage. See You, 
    743 S.E.2d at 433-34
    . The district court
    determined that the January 2010 letter identified the entity with the authority to
    modify the mortgage. Because Carr has not challenged this determination on
    appeal, his argument is abandoned. See Irwin, 
    40 F.3d at
    347 n.1.
    Carr’s argument that the January 2010 letter was improper because it was
    sent by a law firm is without merit. In Reese, the Georgia Court of Appeals
    determined that § 44-14-162.2 does not require the secured creditor to send the
    notice of the initiation of foreclosure proceedings. See Reese, 730 S.E.2d at 552-
    53, vacated and remanded on other grounds, No. S12C2028, order (May 20,
    2013). An entity with authority to act on behalf of the secured creditor may send
    the relevant notice. Id. Further, the notice did not need to reflect that Moss Codilis
    had the authority to send the notice on behalf of the secured creditor. See You, 743
    7
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    S.E.2d at 433-34 (providing that only the individual or entity with the authority to
    modify the terms of the mortgage must be identified in the § 44-14-162.2 notice).
    Carr has not shown that notice was improper under § 44-14-162.2, such that the
    foreclosure sale was invalid. See O.C.G.A. § 44-14-162(a). Additionally, Carr has
    not shown that U.S. Bank breached a legal duty owed to Carr with respect to
    providing notice under § 44-14-162.2. See Gregorakos, 
    647 S.E.2d at 292
    .
    Because Carr has not shown that U.S. Bank breached a legal duty owed to him, his
    wrongful foreclosure claim is unavailing. See 
    id.
     Consequently, it is unnecessary
    to address Carr’s arguments concerning whether he can show causation as to that
    claim.
    AFFIRMED.
    8